The Payment of Bonus Act, 1965images.policy.mofcom.gov.cn/flaw/201411/10b3bd84... · The Payment of Bonus Act, 1965 The Payment of Bonus Act, 1965 1. Preamble §1.Preamble Preamble

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The Payment of Bonus Act, 1965

The Payment of Bonus Act, 1965

1. Preamble

§1.PreamblePreamble

(21 of 1965)

[(Note:- Subs. by Act No.43 of 1977) An Act to provide for thepayment of Bonusto persons employed in certain establishments and for mattersconnectedtherewith]

Be it enacted by the Parliament in the sixteenth year of the Republic ofIndiaas follows :

2. Shot title, extent and application

§2.Shot title, extent and application1. Short title, extent and application - (1) This Act may be called thePayment ofBonus Act,1965

(2) It extends to the whole of India [Note: The words "except the State of

Jammu and Kashmir" omitted by Act 51 of 1970, Sec.2 and Schedule (w.e.f. 1 st

September,1971).

(3) Save as otherwise provided in this Act, it shall apply to -

(a) Every factory; and

(b) Every other establishment in which twenty or more persons are employed onany day during an accounting year :

[(Note: Ins. by Act 23 of 1976, Sec.3 (w.e.f. 25 th September,1975)Providedthat the appropriate Government may, after giving not less thantwo months" notice of itsintention so to do, by notification in the official


Gazette, apply the provisions of thisAct with effect from such accounting yearas may be specified in the notification, to anyestablishment or classestablishments [including an establishment being a factory withinthe meaningof sub-clause (ii) of Cl. (m) of Sec.2 of the Factories Act, 1948 (63 of1948)]employing such number of persons less than twenty as may be specified inthenotification ; so however, that number of persons so specified shall in nocase be lessthan ten.]

(4) Save as otherwise provided in this Act, the provisions of this Act shallinrelation to a factory or other establishment to which this Act applies, haveeffect inrespect of the accounting year commencing on any day in the year 1964and in respect ofevery subsequent accounting year :

[(Note: Added by Act 51 of 1970, Sec.2 and Schedule(w.e.f. 1 st September,1971) Provided that in relation to the State of Jammu and Kashmir,thereference to the accounting year commencing on any day in the year 1964 andeverysubsequent accounting year shall be construed as reference to theaccounting yearcommencing on any day in the year 1968 and every subsequentaccounting year :]

[(Note: Ins. by Act 23 of 1976, Sec.3 (w.e.f. 25 th September,1975)Providedfurther that when the provisions of this Act have been madeapplicable to anyestablishment or class of establishments by the issue of anotification under the provisoto sub-section (3), the reference to theaccounting year commencing on any day in the year1964 and every subsequentaccounting year or, as the case may be, the reference to theaccounting yearcommencing on any day in the year 1968 and every subsequent accountingyearshall in relation to such establishment or class of establishments, beconstrued as areference to the accounting year specified in such notificationand every subsequentaccounting year.]

(5) An establishment to which this Act applies [Note: The words, brackets,letterand figure "under Cl. (b) of sub-section (3)" omitted by Act 23 of 1976,

Sec.8(w.e.f. 25 th September, 1975)] shall continue to be governed by thisActnotwithstanding that the number of persons employed therein falls below

twenty [(Note:Ins. by Act 23 of 1976, Sec-3, (w.e.f. 25 th September, 1975)or, as thecase may be, the number specified in the notification issued underthe proviso tosub-section (3)].

NOTES

Section 1 and 2 of Payment of Bonus (Amendment) Act No.43 of 1977 provides asunder :


1. Shot title and commencement - (1) This Act may be called the Payment ofBonus(Amendment) Act, 1977.

(2) It shall come into force on the third day of September, 1977.

2. Act 21 of 1965 to have modified effect for a particular period - ThePaymentof Bonus Act, 1965 (hereinafter referred to as the principal Act)shall, -

(a) In relation to a factory or other establishment to which the principal Actapplies immediately before the commencement of this Act and

(b) In relation to a banking company and the Industrial ReconstructionCorporation of India to which the principal Act applies on and from suchcommencement by virtue of this Act,

Have effect in respect of the accounting year commencing on any day in theyear 1976[and in respect of the accounting year commencing on any day in theyear 1977], as if theamendments specified in Sections 3 to 19 has been made inthat Act.

Explanation - In this section, the expressions "banking company"and"accounting year" shall have the meanings respectively assigned to theminclauses (8) and (1) of Section 2 of the principal Act".

3. Definitions

§3.Definitions2. Definitions - In this Act, unless the context otherwise requires, - (1) "Accounting year" means -

(i) In relation to a corporation, the year ending on the day on which the books and accounts of the corporation are to beclosed and balanced : (ii) In relation to a company, the period in respect of which any profit and loss account of thecompany laid before it in annual general meeting is made up, whether that period is a year or not;

(iii) In any other case -

(a) The year commencing on the 1 st day of April ; or

(b) If the accounts of an establishment maintained by the employer thereof are closed andbalanced on any day other than the 31 st day of March, then, at the option of the employer, theyear ending on the day on which its accounts are so closed and balanced :

Provided that an option once exercised by the employer under para. (b) of this sub-clause shallnot again be exercised except with the previous permission in writing of the prescribed authority


and upon such conditions as that authority may think fit : (2) "Agricultural income" shall havethe same meaning as in the Income-tax Act ;

(3) "Agricultural income-tax law" means any law for the time being in force relating to the levyof tax on agricultural income ;

(4) "Allocable surplus" means -

(a) In relation to an employer, being a company [(Note: Ins. by Act 66 of 1980(w.e.f. 21 st

August,1980) (other than a banking company)] which has not made the arrangements prescribedunder the Income-tax Act for the declaration and payment within Indian of thedividends payableout of its profits in accordance with the provisions of Sec.194 of that Act, sixty-seven per cent ofthe available surplus in an accounting year ;

(5) In any other case, sixty per cent of such available surplus ;(Note: Certain words omitted byAct 23 of 1976, Sec.4 (w.e.f. 25 th September, 1975)

(6) "Available surplus" means the available surplus computed under Sec.5 ;

(7) "Award" means an interim or a final determination of any industrial dispute or of anyquestion relating thereto ny any Labour Court. Industrial Tribunal or National Tribunalconstituted under the Industrial Disputes Act, 1947 (14 of 1947), or by any other authorityconstituted under any corresponding law relating to investigation and settlement of industrialdisputes in force in a State and includes an arbitration award made under Sec. 10-A of that Act orunder that law; (8) "Banking company" means a banking company as defined in Sec.5 of theBanking Companies Act, 1949 (10 of 1949), and includes the State Bank of India, any subsidiarybank as defined in the State Bank of India (Subsidiary Bank) Act, 1959 (38 of 1959), [(Note: Ins.by Act 23 of 1976 Sec.4(w.e.f. 25 th September, 1975) any corresponding new bank specified inthe First Schedule to the Banking Companies (Acquisition and Transfer of Undertakings) Act,1970, (5 of 1970), [Note: Ins. by Act 66 of 1980,(w.e.f. 21 st August, 1980) any correspondingnew bank constituted under Sec.3 of Banking Companies (Acquisition and Transfer ofUndertakings) Act, 1980] any co-operative bank as defined inCl. (bii) of Sec.2 of the ReserveBank of India Act, 1934 (2 of 1934),] and any other banking institution which may be notified inthis behalf by the Central Government. (9) "Company" means any company as defined in Sec.3of the Companies Act, 1956 (1 of 1956), and includes a foreign company within the meaning ofSec.591 of that Act; (10) "Co-operative society" means a society registered or deemed to beregistered under the Co-operative Societies Act, 1912 (2 of 1912), or any other law for the timebeing in force in any State relating to co-operative societies ; (11) "Corporation" means any bodycorporate established by or under any Central, Provincial or State Act but does not include acompany or a co-operative society : (12) "Direct tax" means - (a) Any tax chargeable under -

(i) The Income-tax Act;

(ii) The Super Profits Tax Act, 1963 (14 of 1963);


(iii) The Companies (Profits) Surtax Act, 1964 (7 of 1964);

(iv) The agricultural income-tax law; and

(b) Any other tax which, having regard to its nature or incidence, may be declared by the CentralGovernment, by notification in the official Gazette to be a direct tax for the purposes of this Act;

(13) "Employee" means any person (other than an apprentice) employed on a salary or wage notexceeding [(Note: Subs. by Act No.67 of 1985, Sec.2, for the words "one thousand and sixhundred rupees"(w.e.f. 7 th November, (1985)) two thousand and five hundred rupees] permensem in any industry to do any skilled or unskilled manual, supervisory, managerial,administrative, technical or clerical work for hire or reward, whether the terms of employment beexpress or implied; (14) "Employer" includes - (i) In relation to an establishment which isfactory, the owner or occupier of the factory, including the agent of such owner or occupier, thelegal representative of a deceased owner or occupier and where a person has been named as amanager of the factory underCl. (f) of sub-section (1) of Sec.7 of the Factories Act, 1948, theperson named; and

(ii) In relation to any other establishment, the person who, or the authority which, has theultimate control over the affairs of the establishment and where the said affairs are entrusted to amanager, managing director or managing agent, such manager, managing director or managingagent ;

(15) "Establishment in private section" means any establishment other than an establishment inpublic sector; (16) "Establishment in public sector" means an establishment owned, controlled ormanaged by- (a) A Government company as defined in Sec. 617 of the Companies Act, 1956 (1of 1956) ;

(b) A corporation in which not less than forty per cent of its capital is held (whether singly ortaken together) by -

(i) The Government; or

(ii) The Reserve Bank of India; or

(iii) A corporation owned by the Government or the Reserve Bank of India ;

(17) "Factory" shall have the same meaning as in Cl. (m) of Sec.2 of the Factories Act, 1948 (63of 1948) ; (18) "Gross profits" means the gross profits calculated under Sec.4 ; (19) "Income-taxAct" means the Income-tax Act, 1961 (43 of 1961) ; (20) "Prescribed" means prescribed by rulesmade under this Act ; (21) "Salary or wage" means all remuneration (other than remuneration inrespect of overtime work) capable of being expressed in terms of money, which would, if theterms of employment, express or implied, were fulfilled, be payable to an employment or ofwork done in such employment and includes dearness allowance (that is to say, all cash


payments, by whatever name called, paid to an employee on account of a rise in the cost ofliving, but does not include - (i) Any other allowance which the employee is for the time beingentitled to ;

(ii) The value of any house accommodation or of such of light, water, medical attendance orother amenity or of any service of anyconfessional supply of food grains or other articles;

(iii) Any traveling concession ;

(iv) Any bonus (including incentive, production and attendance bonus) ;

(v) Any contribution paid or payable by the employer to any pension fund or provident fund orfor the benefit of the employees under any law for the time being in force ;

(vi) Any retrenchment compensation or any gratuity or other retirement benefit payable to theemployees or any ex gratia payment made to him ;

(vii) Any commission payable to the employee.

(viii) Any commission payable to the employee.

Explanation -Where an employee is given in lieu of the whole or part of the salary or wagepayable to him, free food allowance or free food by his employer, such food allowance or thevalue of such food shall, for the purpose of this clause, be deemed to form part of the salary orwage of such employees. (22) Words and expressions used but not defined in this Act anddefined in the Industrial Disputes Act, 1947 (14 of 1947), shall have the meanings respectivelyassigned to them in that Act.

4. Establishments to include departments, undertakings andbranches

§ 4. Establishments to include departments, undertakings and branches3. Establishments to include departments, undertakings and branches - Where an establishment consistsof different departments or undertakings or has branches, whether situated in the same place or in different places, allsuch departments or undertakings or branches shall be treated as parts of the same establishment for the purpose ofcomputation of bonus under this Act : Provided that where for any accounting year a separate balance-sheet and profitand loss account are prepared and maintained in respect of any such department or undertaking or branch, then, suchdepartment or undertaking or breach shall be treated as separate establishment for the purpose of computation of bonusunder this Act for that year, unless such department or undertaking or branch was immediately before thecommencement of that accounting year treated as part of the establishment for the purpose of computation of bonus.NOTES When there is integral link and unity of management between the two division of a company it cannot be saidas a separate undertaking although it is 60 miles away from one division. Gawlior Rayon Silk Mfg. Co. v. IndustrialTribunal 1975 Lab.I.C. 820.


5. Computation of gross profits

§ 5. Computation of gross profits4. Computation of gross profits. - The gross profits derived by an employer from an establishment in respect of anyaccounting year shall - (a) In the case of a banking company, be calculated in the manner specified in the First Schedule;

(b) In any other case, be calculated in the manner specified in the SecondSchedule.

6. Computation of available surplus

§ 6. Computation of available surplus5. Computation of available surplus - The available surplus in respect of any accounting year shall be the grossprofits for that year after deducting therefrom the sums referred to in Sec.6. [(Note: Added by Act 8 of 1969, Sec.2)Provided that the available surplus in respect of the accounting year commencing on any day in the year 1968 and inrespect of every subsequent accounting year shall be the aggregate of - (a) The gross profits for that accounting yearafter deducting therefrom the sums referred to in Section 6 ; and

(b) An amount equal to the difference between -

(i) The direct tax, calculated in accordance with the provisions of Section 7, in respect of anamount equal to the gross profits of the employer for the immediately preceding accounting year;and

(ii) The direct tax, calculated in accordance with the provisions of Section 7, in respect of anamount equal to the gross profits of the employer for such preceding accounting year afterdeducting therefrom the amount of bonus which the employer has paid or is liable to pay to hisemployees in accordance with the provisions of this Act for that year.]

NOTES The burden of proving that the depreciation claimed is the correct amount admissibleunder Section 32 (1) of Income-tax Act lies on the party claiming such amount. Workmen ofNational and Grindlays Bank Ltd. v. National and Grindlays Bank Ltd., AIR 1976 S.C. 611.

7. Sums deductible from gross profits

§7.Sums deductible from gross profits6. Sums deductible from gross profits - The following sums shall be deducted from the grossprofits as prior charges, namely : (a) Any amount by way of depreciation admissible in accordance with the provisionsof sub-section (1) of Section 32 of the Income-tax Act, or in accordance with the provisions of the agricultural Income-tax law, as the case may be : Provided that where an employer has been paying bonus of his employees under a

settlement or an award or agreement made before the 29 th May, 1965, and subsisting on that date after deducting fromthe gross profits notional normal depreciation, then the amount of depreciation to be deducted under this clause shall, atthe option of such employer (such option to be exercised once and within one year from that date) continue to be suchnotional normal depreciation; (b) Any amount by way of [(Note: Subs. by Act 66 of 1980) development rebate or


investment allowance or development allowance] which the employer is entitled to deduction from his income underthe Income-tax Act ;

(c) Subject to the provisions of Section 7, any direct tax which the employer is liable to pay forthe accounting year in respect of his income, profits and gains during the year ;

(d) Such further sums as are specified in respect of the employer in the [(Note: Ibid)ThirdSchedule].

8. Calculation of direct tax payable by the employer

§ 8. Calculation of direct tax payable by the employer7. Calculation of direct tax payable by the employer - [(Note: Subs. by Act 68 of 1969) Any direct taxpayable by the employer] for any accounting year shall, subject to the following provisions, be calculated at the ratesapplicable to the income of the employer for that year, namely : (a) In calculating such tax no account shall be taken of- (i)Any loss incurred by the employer in respect of any previous accounting year and carried forward under any lawfor time being in force relating to direct taxes ;

(ii) Any arrears of depreciation which the employer is entitled to add to the amount of theallowance for depreciation for any following accounting year or years under sub-section (2) ofSection 32 of the Income-tax Act ;

(iii) Any exemption conferred on the employer under Section 84 of the Income-tax Act or of anydeduction The Orient Tavern which he is entitled under sub-section (1) of Section 101 of thatAct, as in force immediately before the commencement of the Finance Act, 1965 (10 of 1965) ;

(b) Where the employer is a religious or a charitable institution to which the provisions ofSection 32 do not apply and the whole or any part of its income is exempt from tax under theIncome-tax Act, then, with respect The Orient Tavern the income so exempted, such institutionshall be treated as if it were a company in which the public are substantially interested within themeaning of that Act ;

(c) Where the employer is an individual or a Hindu undivided family, the tax payable by suchemployer under the Income-tax Act shall be calculated on the basis that the income derived byhim from the establishment is his only income ;

(d) Where the income of any employer includes any profits and gains derived from the export ofany goods or merchandise out of India any rebate on such income is allowed under any law forthe time being in force relating to direct taxes, then, no account shall be taken of such rebate ;

(e) No account shall be taken of any rebate [(Note: Subs. by Act 66 of 1980)other thandevelopment rebate or investment allowance or development allowance)] or credit or relief ordeduction (not hereinafter mentioned in this section) in the payment of any direct tax allowedunder nay law for the time being in force relating to direct taxes or under the relevant annual


Finance Act, for the development of any industry.

9. Eligibility for bonus

§ 9. Eligibility for bonus8. Eligibility for bonus - Every employee shall be entitled to be paid by his employer in anaccounting year, bonus, in accordance with the provisions of this Act, provided he has worked inthe establishment for not less than thirty working days in that year.

10. Disqualification for bonus

§ 10. Disqualification for bonus9. Disqualification for bonus - Notwithstanding anything contained in this Act, an employee shall be disqualifiedfrom receiving bonus under this Act, if he is dismissed from service for- (a) Fraud; or

(b) Riotous or violent behaviour while on the premises of the establishment; or

(c) Theft, misappropriation or sabotage of any property of the establishment.

11. Payment of minimum bonus

§ 11. Payment of minimum bonus10. Payment of minimum bonus - Subject to the other provisions of this Act, every employershall be bound to pay to every employee in respect of the accounting year commencing on anyday in the year 1979 and in respect of every subsequent accounting year, a minimum bonuswhich shall be 8.33 per cent of the salary or wage earned by the employee during the accountingyear or one hundred rupees, whichever is higher, whether or not the employer has any allocablesurplus in the accounting year : Provided that there an employee has not employed fifteen yearsof age at the beginning of the accounting year, the provision of this section shall have effect inrelation to such employee as if for the words "one hundred rupees", the words "sixty rupees"weresubstituted.

12. Payment of maximum bonus

§ 12. Payment of maximum bonus11. Payment of maximum bonus - (1) Where in respect of any accounting year referred to in Sec.10, the allocablesurplus exceeds the amount of minimum bonus payable to the employees under that section, the employer shall, in lieuof such minimum bonus, be bound to pay to every employee in respect of that accounting year bonus which shall be anamount in proportion to the salary or wage earned by the employee during the accounting year subject to a maximum oftwenty per cent of such salary or wage. (2) In computing the allocable surplus under this section, the amount set on orthe amount set-off under the provisions of Sec.15 shall be taken into account in accordance with the provisions of


thatsection.

13. Calculation of bonus with respect to certain employees

§ 13. Calculation of bonus with respect to certain employees12. Calculation of bonus with respect to certain employees - Where the salary or wage of anemployee exceeds one thousand and six hundred rupees per mensem, the bonus payable to suchemployee under Sec.10, or as the case may be, under Sec.11, shall be calculated as if his salaryor wage were one thousand and six hundred rupees per mensem.

14. Proportionate reduction in bonus in certain cases

§ 14. Proportionate reduction in bonus in certain cases13. Proportionatereduction in bonus in certain cases - Where an employee has not worked forall the working days inan accounting year, the minimum bonus of one hundredrupees or, as the case may be, of sixty rupees, if such bonus ishigher than8.33 per cent of his salary or wage for the days he has worked in thataccounting year, shall beproportionately reduced. NOTES Working days - Words"working day in any accounting year" - meaning of - factoryworking in aparticular season only and not during the whole year in such a case the "workingdays" only mean thosedays of the year during which the employee concerned isactually allowed to work. (Shakkar Mills Mazdoor Sangh v.Gwalior Sugar Co. Ltd., 1985 JLJ 294 = AIR 1985 SC 758).

15. Computation of number of working days

§ 15. Computation of number of working days14. Computation of number of working days. - For the purposes of Sec. 13, an employee shall be deemed tohave worked in an establishment in any accounting year also on the days on which - (a) He has been laid off under anagreement or as permitted by standing orders under the Industrial Employment (Standing Orders) Act, 1946 (20 of1946), or under the Industrial Disputes Act, 1947 (14 of 1947) or under any other law applicable to the establishment ;

(b) He has been on leave with salary or wage ;

(c) He has been absent due to temporary disablement caused by accident arising out of and in thecourse of his employment; and

(d) The employee has been on maternity leave with salary or wage, during the accounting year.

16. Set-on and set-off of allocable surplus

§ 16. Set-on and set-off of allocable surplus15. Set-on and set-off of allocable surplus - (1) Where for any accounting year, the allocable surplus exceeds theamount of maximum bonus payable to the employees in the establishment under Sec.11, the, the excess shall, subject toa limit of twenty per cent of the total salary or wage of the employees employed in the establishment in that accounting


year, be carried forward for being set-on in the succeeding accounting year and so on up to and inclusive of the fourthaccounting year to be utilized for the purpose of payment of bonus in the manner illustrated in the Fourth Schedule. (2)Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short ofthe amount of minimum bonus payable to the employees in the establishment under Section 10, and there is no amountor sufficient amount carried forward and set on under sub-section (1) which could be utilized for the purpose ofpayment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carriedforward for being set-off in the succeeding accounting year and so on up to and inclusive of the fourth accounting yearin the manner illustrated in the Fourth Schedule. (3) The principle of set-on and set-off as illustrated in the FourthSchedule shall apply to all other cases not covered by sub-section (1) or sub-section (2) for the purpose of payment ofbonus under this Act. (4) Where in any accounting year any amount has been carried forward and set-on or set-offunder this section, then, in calculating bonus for the succeeding accounting year, the amount of set-on or set-off carriedforward from the earliest accounting year shall first be taken intoaccount.

17. Special provisions with respect to certain establishments

§ 17. Special provisions with respect to certain establishments16. Special provisions with respect to certain establishments - (1) Where an establishment is newly set up, whetherbefore or after the commencement of this Act, the employees of such establishment shall be entitled to be paid bonusunder this Act in accordance with the provisions of sub-section (1-A), (1-B) and (1-C). (1-A) In the first fiveaccounting years following the accounting year in which the employee sells the goods produced or manufactured byhim or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of theaccounting year in which the employer derives profit from such establishment and such bonus shall be calculated inaccordance with the provisions of this Act in relation to that year, but without applying the provisions of Sec.15. (1-B)For the sixth and seventh accounting years following the accounting year in which the employer sells the goodsproduced or manufactured by him or renders services, as the case may be, from such establishment, the provisions ofSec.15 shall apply subject to the following modifications namely : (i) For the sixth accounting year - Set on or set-off,

as the case may be, shall be made in the manner illustrated in the [(Note: Subs. by Act 66 of 1980,(w.e.f. 25 th

September,1975) Fourth Schedule] taking into account the excess or deficiency, if any, as the case may be, of theallocable surplus set-on or set-off in respect of the fifth and sixth accounting year ; (ii) For the seventh accounting year- Set-on or set-off, as the case may be, shall be made in the manner illustrated the [(Note: Subs. by Act 66 of

1980,(w.e.f. 25 th September,1975) Fourth Schedule] taking into account the excess of deficiency, if any, as the casemay be, of the allocable surplus set-on or set-off in respect of the fifth, sixth and seventh accounting years. (1-C) Fromthe eighth accounting year following the accounting year in which the employer sells the goods produced ormanufactured by him or renders services, as the case may be, from such establishment, the provisions of Sec.15 shallapply in relation to such establishment as they apply in relation to any other establishment. Explanation I - For thepurpose of sub-section (1), an establishment shall not be deemed to be newly set up merely by reason of a change in itslocation, management, name or ownership. Explanation II - For the purpose of sub-section (1-A), an employer shall notbe deemed to have derived profit in any accounting year unless - (a) He has made provision for that year"s depreciation,to which he is entitled under the Income-tax Act or, as the case may be, under the agricultural income-tax law ; and

(b) The arrears of such depreciation and losses incurred by him in respect of the establishmentfor the previous accounting years have been fully set-off against his profits.

Explanation III -For the purposes of sub-sections (1-A), (1-B) and (1-C) sale of the goodsproduced or manufactured during the course of the trail running of any factory or of theprospecting stage or an oil-field shall not be taken into consideration and where any questionarises with regard to such production or manufacture, the decision of the appropriateGovernment, made after giving the parties reasonable opportunity of representing the case, shallbe final and shall not be called in question by any court or other authority.] (2) The provisions of


[(Note: Subs. by Act 23 of 1976,(w.e.f. 25 th September, 1975) sub-sections (1), (1-A), (1-B)and (1-C) shall, so far as may be, apply to new departments or undertakings or branches set upby existing establishments : Provided that if an employer in relation to an existing establishmentconsisting of different departments or undertakings or branches (whether or not in the sameindustry) set up at different periods has, before the 29 th May, 1965, been paying bonus to theemployees of all such departments or undertakings or branches irrespective of the date on whichsuch departments or undertakings or branches were set up, on the basis of the consolidatedprofits computed in respect of all such departments or undertakings or branches, then, suchemployer shall be liable to pay bonus in accordance with the provisions of this Act to theemployees of all such departments or undertakings or branches (whether set up before or afterthat date) on the basis of the consolidated profits computed as aforesaid.

18. Adjustment of customary or interim bonus against bonuspayable under the Act.

§ 18. Adjustment of customary or interim bonus against bonus payable under the Act.17. Adjustment of customary or interim bonus against bonus payable under the Act. - Where in anyaccounting year - (a) An employer has paid any puja bonus or other customary bonus to an employees ; or

(b) An employer has paid a part of the bonus payable under this Act to an employee before thedate on which such bonus becomes payable;

Then, the employer shall be entitled to deduct the amount of bonus so paid from the amount ofbonus payable by him to the employee under this Act in respect of that accounting year and theemployee shall be entitled to receive only the balance.

19. Deduction of certain amounts from bonus payableunder the Act

§19.Deduction of certain amounts from bonus payable under the Act18. Deduction of certain amounts from bonus payable under the Act. - Where inany accounting year, an employee is found guilty of misconduct causingfinancial loss to the employer, then, it shall, be lawful for the employer todeduct the amount of loss from the amount of bonus payable by him to theemployee under this Act in respect of that accounting year only and theemployee shall be entitled to receive the balance, if any.

20. Time-limit for payment of bonus

§20.Time-limit for payment of bonus


19. Time-limit for payment of bonus - [(Note: Subs. by Act 23 of 1976,(w.e.f. 25 th September,1975) All amounts] payable to an employee by way of bonus under this Act shall be paid in cash by hi employer. (a)Where there is a dispute regarding payment of bonus pending before any authority under Sec.22, within a month fromthe date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute;

(b) In any other case, within a period of eight months from the close of the accounting year :

Provided that the appropriate Government or such authority as the appropriate Government mayspecify in this behalf may, upon an application made to it by the employer and for sufficientreasons, by order, extend the said period of eight months to such further period or periods as itthinks fit ; so, however, that the total period so extended shall not in any case exceed two years.(Note: Sub-sections (2) to (7) inserted by Act 68 of 1972, Sec.4 omitted by Act 23 of 1976,Sec.13(w.e.f. 25 th September, 1975). (Note: Sub-section (8) inserted by Act 39 of 1973, Sec.4,omitted by Act 55 of 1973, Sec.2(w.e.f. 1 st September, 1973). NOTES Sub-Section (8) ofSection 19 was omitted by Payment of Bonus (Amendment) Act No. 55 of 1973w.e.f. 1.9.1973and Section 3 of the above Amendment Act is given below: "3. Portion of bonus credited in theprovident fund account to be refunded. - Where in pursuance of the provisions of Section 19 ofthe principal Act, any portion of the bonus paid to an employee in respect of the accounting yearcommencing on any day in the year 1972 has been remitted by the employer before thecommencement of this Act to the authority maintaining the provident fund account of suchemployee for crediting the same in that account, such authority shall, notwithstanding anythingcontained in any other law (including any scheme) for the time being in force, refund suchportion to the employee".

21. Application of Act to establishments in public sector incertain cases

§ 21. Application of Act to establishments in public sector in certain cases20. Application of Act to establishments in public section in certain cases - [(Note: Renumbered byAct 66 of 1980)1] If in any accounting year an establishment in public section sells any goods produced ormanufactured by it or renders any services, in competition with an establishment in private sector, and the income fromsuch sale or services or both is not less than twenty per cent of the gross income of the establishment in public sectorfor that year, then, the provisions of this Act shall apply in relation to such establishment in public sector as they applyin relation to a like establishment in private sector. [(Note: Ins. by Sec.11, ibid) (2) Save as otherwise provided in sub-section (1), nothing in this Act shall apply to employees employed by any establishment in public sector.]

22. Recovery of bonus due from an employer

§ 22. Recovery of bonus due from an employer21. Recovery of bonus due from an employer - Where any money is due to an employee by way of bonusfrom his employer under a settlement or an award or agreement, the employee himself, or any other person authorisedby him in writing in this behalf, or in the case of the death of the employee, his assignee or heirs may, without prejudiceto any other mode of recovery made an application to the appropriate Government for the recovery, of the money dueto him, and if the appropriate Government or such authority as the appropriate Government may specify in this behalf


is satisfied that any money is so due, it shall issue a certificate for that amount to the Collector who shall proceed torecover the same in the same manner as an arrear of land revenue : Provided that every such application shall be madewithin one year from the date on which the money became due to the employee from the employer : Provided furtherthat any such application may be entertained after the expiry of the said period of one year, if the appropriateGovernment is satisfied that the applicant had sufficient cause for not making the application within the said period.

Explanation - In this section and in [(Note: Subs. by Act 66 of 1980,(w.e.f. 21 st August, 1980) Secs. 22,23,24 and 25],"employee" includes a person who is entitled to the payment of bonus under this Act but who is no longer inemployment.

23. Reference of dispute under this Act

§ 23. Reference of dispute under this Act22. Reference of dispute under this Act. - Where any dispute arises between an employer and hisemployees with respect to the bonus payable under this Act or with respect to the application ofthis Act to an establishment in public sector, then, such dispute shall be deemed to be anindustrial dispute within the meaning of the Industrial Dispute Act, 1947 (14 of 1947), or of anycorresponding law relating to investigation and settlement of industrial disputes in force in aState and the provisions of that Act or, as the case may be, such law, save as otherwise expresslyprovided, apply accordingly.

24. Presumption about accuracy of balance-sheet and profitand loss account of corporations and companies

§ 24. Presumption about accuracy of balance-sheet and profit and loss account of corporationsand companies23. Presumption about accuracy of balance-sheet and profit and loss account of corporations andcompanies - (1) Where, during the course of proceedings before any arbitrator or tribunal under the IndustrialDisputes Act, 1947 (14 of 1947), or under any corresponding law relating to investigation and settlement of industrialdisputes in force in a State (hereinafter in this section [(Note: Subs. by Act 23 of 1976, Sec.16 for land in Secs.24 and

25,(w.e.f. 25 th September, 1975) and in [(Note: Subs. by Act 66 of 1980,(w.e.f. 21 st August, 1980) [Secs. 24 and 25]]referred to as the "said authority") to which any dispute of he nature specified in Sec.22 has been referred, the balance-sheet and the profit and loss account of an employer, being a corporation or a company (other than a bankingcompany), duly audited by the Comptroller and Auditor-General of India or by auditors duly qualified to act as auditorsof companies under sub-section (1) of Sec.226 of the Companies Act,, 1956 (1 of 1956), are produced before it, thenthe said authority may presume the statements and the particulars contained in such balance-sheet and profit and lossaccount to be accurate and it shall not be necessary for the corporation or the company to prove the accuracy of suchstatements and particulars by the filing of an affidavit or by any other mode: Provided that where the said authority issatisfied that the statements and particulars contained in the balance-sheet or the profit and loss account of thecorporation or the company are not accurate, it may take such steps as it thinks necessary to find out the accuracy ofsuch statements and particulars. (2) When an application is made to the said authority by any trade union being a partyto the dispute or where there is not trade union, by the employees being a party to the dispute, requiring anyclarification relating to any item in the balance-sheet or the profit and loss account, it may, after satisfying itself thatsuch clarification is necessary, by order, direct the corporation or, as the case may be, the company, to furnish to thetrade union or the employees such clarification within such time as may be specified in the direction and thecorporation or, as the case may be, the company shall comply with such direction.


25. Audited accounts of banking companies not to bequestioned

§ 25. Audited accounts of banking companies not to be questioned24. Audited accounts of banking companies not to be questioned - (1) Where any dispute of the nature specified inSec.22 between an employer, being a banking company, and its employees has been referred to the said authority underthat section and during the course of proceedings the accounts of the banking company duly audited are producedbefore it, the said authority shall not permit any trade union or employees to question the correctness of such accounts,but the trade union or the employees may be permitted to obtain from the banking company such information as isnecessary for verifying the amount of bounds due under this Act. (2) Nothing contained in sub-section (1) shall enablethe trade union or the employees to obtain any information which the banking company is not compelled to furnishunder the provisions of Sec. 34-A of the Banking Regulation Act, 1949 (10 of1949).

26. Audit of accounts of employers, not being corporationsor companies

§ 26. Audit of accounts of employers, not being corporations or companies25. Audit of accounts of employers, not being corporations or companies - (1) Where any dispute ofthe nature specified in Section 22 between an employer, not being a corporation or a company, and his employees hasbeen referred to the said authority under that section and the accounts of such employer audited by any auditor dulyqualified to act as auditor of Companies under sub-section (1) of Section 226 of the Companies Act, 1956 (1 of 1956),are produced before the said authority, the provisions of Section 23, shall, so far as may be, apply to the accounts soaudited. (2) When the said authority finds that the accounts of such employer have not been audited by any such auditorand it is of opinion that an audit of the accounts of such employer is necessary for deciding the question referred to it,then it may, by order, direct the employer to get his accounts audited within such time as may be specified in thedirection or within such further time as it thinks fit and thereupon the employer shall comply with such direction. (3)Where an employer fails to get the accounts audited under sub-section (2) the said authority may, without prejudice tothe provisions of Sec.28 get the accounts audited by such auditor or auditors as it thinks fit. (4) When, the accounts areaudited under sub-section (2) or sub-section (3) the provisions of Sec.23 shall, so far as may be, apply to the accountsso audited. (5) The expenses of, and incidental to, any audit under sub-section (3) (including the remuneration of theauditor or auditors) shall be determined by the said authority (which determination shall be final) and paid by theemployer and in default of such payment shall be recoverable from the employer in the manner provided in Sec.21

27. Maintenance of registers, records, etc.

§ 27. Maintenance of registers, records, etc.26. Maintenance of register, records, etc. - Every employer shall prepare and maintain suchregisters, records and other documents in such form and in such manner as may be prescribed.

28. Inspectors

§ 28. Inspectors


27. Inspectors - (1) The appropriate Government may, by notification in the official Gazette, appoint such personsas it thinks fit to be Inspectors for the purpose of this Act and may define the limits within which they shall exercisejurisdiction. (2) Require an employer to furnish such information as he may consider necessary ;

(a) At any reasonable time and with such assistance, if any, as he thinks fit, enter anyestablishment or any premises connected therewith and require any one found in charge thereofto produce before him for examination any accounts, books, registers and other documentsrelating to the employment of persons or the payment of salary or wage or bonus in theestablishment;

(b) Examine with respect to any matter relevant to any of the purposes aforesaid, the employer,his agent or servant or any other person found in charge of establishment or any premisesconnected therewith or any person whom the Inspector has reasonable cause to believe to be orto have been an employee in the establishment ;

(c) Make copies of, or take extracts from, any book, register or other document maintained inrelation to the establishment ;

(d) Exercise such other powers as may be prescribed.

(3) Every Inspector shall be deemed to be a public servant within the meaning of the IndianPenal Code (45 of 1860). (4) An person required to produce any accounts, book, register or otherdocument or to give information by an Inspector under sub-section (1) shall be legally bound todo so. [(Note: Subs. by Act 66 of 1980 (w.e.f. 21 st August, 1980) (5) Nothing contained in thissection shall enable an Inspector to require a banking company to furnish or disclose anystatement or information or to produce, or give inspection of, any of its books of account or otherdocuments, which a banking company cannot be compelled to furnish, disclose, produce or giveinspection of, under the provisions of Sec. 34-A of the Banking Regulation Act, 1949( 10 of1949)].

29. Penalty

§ 29. Penalty28. Penalty - If any person - (a) Contravenes any of the provisions of this Act or any rule madethereunder; or

(b) To whom a direction is given or a requisition is made under this Act fails to comply with thedirection or requisition.

He shall be punishable with imprisonment for a term which may extend to six months, or withfine which may extend to one thousand rupees, or with both.

30. Offences by companies


§ 30. Offences by companies29. Offences by companies - (1) If the person committing an offence under this Act is a company, every personwho, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct ofbusiness of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to beproceeded against and punished accordingly: provided that nothing contained in sub-section (1), where an offenceunder this Act has been committed by a company and it is proved that the offence has been committed with the consentor connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of thecompany, such director, manager, secretary or other officer shall also be proceeded against and punished accordingly.Explanation - For the purposes of this section - (a) "Company" means any body corporate and includes a firm or otherassociation of individuals ; and

(b) "Director", in relation to a firm, means a partner in the firm.

31. Cognizance of offences

§ 31. Cognizance of offences30. Cognizance of offences:- (1) No court shall take cognizanceof any offence punishable underthis Act, save on complaint made by or under the authorityof the appropriate Government,[(Note: Ins. by ibid, See.16) or an officer ofthat Government (not below the rank of a RegionalLabour Commissioner in the case of anofficer of the Central Government and not below the rankof a labour commissioner the caseof an officer of the State Government) specially authority inthis behalf by thatGovernment.]

(2) No Court inferior to that of a presidency magistrate or a magistrate of thefirst class shall tryany offence publishable under this Act.

32. Protection of action taken under the Act

§32.Protection of action taken under the Act31. Protection of action taken under the Act. - No suit, prosecution or otherlegal proceeding shall lie against the Government or any officer of theGovernment for anything which is in good faith done or intended to be done inpursuance of this Act or any rule made thereunder.

33. Special provision with respect to payment ofbonus linked with production or productivity

§33.Special provision with respect to payment of bonus linked with productionor productivity31-A. Special provision with respect to payment of bonus linked withproduction or productivity - Notwithstanding anything contained in this Act, - (i) Where an agreement


or a settlement has been entered into by the employees with their employer before the commencement of the Paymentof Bonus (Amendment) Act, 1976 (23 of 1976), or

(ii) Where the employees enter into any agreement with their employer after suchcommencement,

For payment of an annual bonus linked with production or productivity in lieu of bonus based onprofits payable under this Act, then, such employees shall be entitled to receive bonus due tothem under such agreement or settlement, as the case may be : [(Note: Ins. by Act 66 of 1980,(w.e.f. 21 st August, 1980))Provided that any such agreement or settlement whereby theemployees relinquish their right to receive the minimum bonus under Sec.10 shall be null andvoid in so far as it purports to deprive them of such right :] [(Note: Subs. by ibid) Providedfurther that] such employees shall not be entitled to be paid such bonus in excess of twenty percent, of the salary or wage earned by them during the relevant accounting year.]

34. Act not to apply to certain classes of employees

§ 34. Act not to apply to certain classes of employees32. Act not to apply to certain classes of employees. - Nothing in this Act shall apply to - (i) Employeesemployed by any insurer carrying on general insurance business and the employees employed by the Life InsuranceCorporation of India ;

(ii) Seaman as defined in Cl. (42) of Sec.3 of the Merchant Shipping Act, 1958 (44 of 1958) ;

(iii) Employees registered or listed under any scheme made under the Dock Workers (Regulationof Employment) Act, 1948 (9 of 1948), and employed by registered or listed employers ;

(iv) Employees employed by an establishment engaged in any industry carried on by or under theauthority of any department of the Central Government or a State Government or a localauthority ;

(v) Employees employed by -

(a) The Indian Red Cross Society or any other institution of a like nature (including its branches);

(b) Universities and other educational institutions ;

(c) Institutions (including hospitals, chambers of commerce and society welfare institutions)established not for purposes of profit ;

(i) Employees employed through contractors on building operations ;

(ii) (Note: Clause (vii) omitted by Act 66 of 1980, (w.e.f. 21 st August, 1980)


(iii) Employees employed by the Reserve Bank of India ;

(iv) Employees employed by -

(a) The Industrial Finance Corporation of India;

(b) By Financial Corporation established under Sec.3, or any Joint Financial Corporationestablished under Sec. 3-A of the State Financial Corporations Act, 1951 (63 of 1951) ;

(c) The Deposit Insurance Corporation ;

(d) [(Note: Subs. by Act 61 of 1981) the National Bank for Agriculture and Rural Development;]

(e) the Unit Trust of India ;

(f) the Industrial Development Bank of India ;

(Note: Omitted by Act 66 of 1980,(w.e.f. 21 st August, 1980)) (g) Any other financial institution[(Note: Ins. by ibid) Other than a bankingcompany], being an establishment in public sector,which the Central Government may, by notification in the official Gazette, specify having regardto - (i) Its capital structure ; (i)Its objectives and the nature of its activities;

(ii) The nature and extent of financial assistance or any concession given to it by theGovernment; and

(iii) Any other relevant factor ;

(i) (Note: Clause (x) omitted by Act 23 of 1976, Sec.20, (w.e.f. 25 th September, 1975)

(ii) Employees employed by inland water transport establishments operating on routes passingthrough any other country.

NOTES

Applicability of the provisions of the Bonus Act to employees the Defence ministry canteenstores department. It was held that canteen stores department is an "establishment" engaged inany industry carried on by or under the authority of any department of the Central Government.(Radhu-k-Kallde of Bombay v. Union of India and other (1986) 1 S.C.J.5).

35. [Repealed]

§ 35. [Repealed]33. [Act to apply of certain pending dispute regarding payment of bonus.] Rep. by the Payment


of Bonus (Amendment) Act, 1976 (23 of 1976), Section 21 (w.e.f. 25 th September, 1975).

36. Employees and employers not to be precluded fromentering into agreements for grant of bonus under adifferent formula

§ 36. Employees and employers not to be precluded from entering into agreements for grant ofbonus under a different formula34. Employees and employers not to be precluded from entering into agreements for grant of bonus under a differentformula. - Nothing contained in this Act shall be construed to preclude employees employed in any establishment orclass of establishments from entering into agreements with their employer for granting them an account of bonus undera formula which is different for that under this Act : Provided that no such agreement shall have effect unless it isentered into with the previous approval of the appropriate Government : Provided further that any such agreementwhereby the employees relinquish their right to receive the minimum bonus under sub-section (2-A) of Section 10 shallbe null and void in so far as it purports to deprive them of such right : Provided also that such employees shall not beentitled to be paid bonus in excess of - (a) 8.33 per cent of the salary or wage earned by them during accounting year ifthe employer has no allocable surplus in the accounting year or the amount of such allocable surplus is only so muchthat, but for the provisions of sub-section (2-A)of Section 10, it would entitle the employees only to receive an amountof bonus which is less than the aforesaid percentage, or

(b) Twenty per cent, of the salary or wage earned by them during the accounting year.

NOTES Employer and workmen enter into settlement before Conciliation Officer on 9 th

October, 1972 within the meaning of Sec.34 (3) of Payment of Bonus Act - On a referencebefore the tribunal workmen claims three month Salary as customer"s bonus or 2% of salary asper the Act - Validity of award directing payment of three months basic wages as on 31 st March1972 instead of 31 st March 1970 in term 1 of the Settlement. (Dishergarh Power Supply Co.,Ltd. v. The Workmen of Dishergarh Power Supply Co., Ltd., (1986) 3 SCJ 247).

37. Effect of laws and agreements inconsistent with the Act

§ 37. Effect of laws and agreements inconsistent with the Act34-A. - Effect of laws and agreements inconsistent with the Act. - Subject to the provisions ofSections 31-A and 34, the provisions of this Act shall have effect notwithstanding anythinginconsistent therewith contained in any other law for the time being in force or in the terms ofany award, agreement, settlement or contract of service.

38. Saving

§ 38. Saving35. Saving - Nothing contained in this Act shall be deemed to affect the provisions of the Coal


Mines Provident Fund and Bonus Schemes Act, 1948 (46 of 1948), or of any scheme made thereunder.

39. Power of exemption

§ 39. Power of exemption36. Power of exemption - If the appropriate Government, having regard to the financial position and otherrelevant circumstances of any establishment or class of establishments, is of opinion that it will not be in public interestto apply all or any of the provisions of this Act thereto, it may, by notification in the official Gazette, exempt for suchperiod as may be specified therein and subject to such conditions as it may think fit to impose, such establishment orclass of establishments from all or any of the provisions of this Act.

NOTES The Court has jurisdiction to consider whether the powers under Section 36 has been properly exercised by theGovernment. Consideration of the profits for one previous year cannot amount to consideration of "the financialposition" of an establishment within the terms of Section 36 of the Bonus Act. (M/s, Fashan Electric Dry Cleaners v.The Government ofA.P. (1977) 1 An. A.W.R.27).

40. [Repealed]

§ 40. [Repealed]37. [Power to remove difficulties] Rep. by the Payment of Bonus (Amendment) Act, 1976 (23 of1976), Section 23 (w.e.f. 25 th September, 1975).

41. Power to makes rules

§ 41. Power to makes rules38. Power of make rules. - (1) The Central Government may make rules for the purpose of carrying into effectthe provision of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rulesmay provide for - (a)The authority for granting permission under the proviso to sub-clause (iii) ofCl. (I) of Sec.2 ;

(b) The preparation of registers, records and other document and the form and manner in whichsuch registers, records and documents may be maintained under Sec.26 ;

(c) The powers which may be exercised by an inspector underCl. (e) of sub-section (2) of Sec.27;

(d) Any other matter which is to be, or may be prescribed.

(3) Every rule made under this section shall be laid as soon as may be after it is made, beforeeach House of Parliament while it is in session for a total period of thirty days, which may becomprised in onesession [(Note: Subs. by Act 23 of 1976, (w.e.f. 25 th September, 1975) or intwo or more successive session], and if before the expiry of the session [(Note: Subs. by Sec.21,ibid,(w.e.f. 25 th September, 1975) immediately following the session or the successive sessions


aforesaid], both Houses agree in making any modification in the rule or both Houses agree thatthe rule should not be made, the rule shall thereafter have effect only in such modified form or beof no effect as the case may be; so however, that any such modification or annulment shall bewithout prejudice to the validity of anything previously done under that rule.

42. Application of certain laws not barred

§ 42. Application of certain laws not barred39. Application of certain laws not barred. - Save as otherwise expressly provided, the provisionsof this Act shall be in addition to and not in derogation of the industrial Disputes Act, 1947 (14of 1947) or any corresponding law relating The Orient Tavern investigation and settlement ofindustrial disputes in force in a State.

43. Repeal and saving

§ 43. Repeal and saving40. Repeal and saving - (1) The Payment of Bonus Ordinance, 1965 (3 of 1965) is hereby repealed. (2)Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been

done or taken under this Act as if this Act commenced on the 29 th May, 1965.

Schedules

44. The First Schedule

Schedules

§ 44. The First Schedule

Explanation - In sub-item (b) of item 3, "approved gratuity fund" has the same meaning assigned to it in Cl. (5) of Sec.2of the Income-tax Act.]

45. The Second Schedule

§45.The Second Schedule

September, 1975) Explanation - In sub-item (aa) of Item 3, "approved gratuity fund" has the samemeaning assigned to it in Cl. (5) of Sec.2 of the Income-tax Act.]


46. The Third Schedule

§46.The Third Schedule

Explanation - The expression "reserves" occurring in column (3) against Item Nos. [(Note:

Omitted by Act 23 of 1976, and by Act 43 of 1977, Sec.19 (w.e.f. 3rd July 1977) 1 (iii), 2 (ii),and 3 (ii)] shall not include any amount set apart for the purpose of -

(ii) Meeting any depreciation admissible in accordance with the provisions of Cl. (a) of Sec.6 ;

(a) Any amount, over and above the amount referred to in Cl. Of payment of any direct tax; and

(b) Any amount set apart for meeting any depreciation in excess of the amount admissible inaccordance with the provisions of Cl. (a) of Sec.6].

47. The Fourth Schedule

§47.The Fourth Schedule

The balance of Rs.1,10,000 set on from Year-2 lapses.]

Rules

48. Introduction

Rules

§48.IntroductionIntroduction

No. G.S.R. 2367, dated the 21 st August, 1975 (Note: Published in theGazette

of India, Pt. II, Sec.3 (I) dated 30 th August,1975 p.2580) - Inexercise ofthe powers conferred by Sec.38 of the Payment of Bonus Act,1965 (XXI of1965),and in super session of the Payment of Bonus Rules, 1965, the CentralGovernment herebymakes the following rules namely

(See Rules 1 to 5)

49. Short title and commencement


§49.Short title and commencement1. Short title and commencement - (1) These rules may be called the Payment of Bonus

Rules, 1965 (2) These shall come into force at once on the date of their publication in theofficial Gazette.

50. Definitions

§50.Definitions2. Definitions - In these rules, - (a) "Form" means a form appended to these rules ;

(b) "Act" means the Payment of Bonus Act, 1965(XXI of 1965) ;

(c) "Section" means a section of the Act.

51. Authority for granting permission for change of accounting year

§ 51. Authority for granting permission for change of accounting year3. Authority for granting permission for change of accounting year - The prescribed authority for thepurposesof the proviso to para. (b) of sub-clause (iii) of Cl. (1) of Sec.2 shall be- (a) In the case of an establishment inrelation to which the Central Government is the appropriate Government under the Act, the Chief LabourCommissioner (Central);

(b) In any other case, the Labour Commissioner of the State in which the establishment issituated.

52. Maintenance of registers

§ 52. Maintenance of registers4. Maintenance of registers. - Every employer shall prepare and maintain the following registers, namely: (a) Aregister showing the computation of the allocable surplus referred to inCl. (4) of Sec.2 in Form A ;

(b) A register showing the set-on and set-off of the allocable surplus, under Sec.15, in Form B ;

(c) A register showing the details of the amount of bonus due to each of the employees, thedeductions under Secs.17 and 18 and the amount actually disbursed, in Form C.

53. Annual returns

§ 53. Annual returns5. Annual returns - Every employer shall send a return in Form D to the Inspector so as to reach


the said form to the Inspector within 30 days after the expiry of the time limit specified in Sec.19 for payment of bonus.

Documents

The Payment of Bonus Act, 1965images.policy.mofcom.gov.cn/flaw/201411/10b3bd84... · The Payment of Bonus Act, 1965 The Payment of Bonus Act, 1965 1. Preamble §1.Preamble Preamble